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Why Work With an Agent When I Can Buy Cheap Car Insurance Online?

Sometimes “cheap” car insurance costs you more in the long run. Learn the benefits of working with an insurance agent, even in a digital world

Quick take: Why work with an agent for car insurance?

• Working with an insurance agent can help you get a personalized review of your coverage options.
• An agent can assist with starting the claims process.
• Annual reviews help you check in so that you can make sure coverage is still a good fit.
• The agent relationship can help you feel confidence that you’ve chosen the right insurance coverages.

Q.  I’ve seen a lot of commercials from direct insurance carriers advertising the cheapest rates if I go online or call a 1-800 number. My parents always worked with a real-life insurance agent, but I’m not sure I need one. What are some advantages to working with an agent?

We posed this question to Paul Harrington, a Insurance Holdings® agent based in Moore, Oklahoma. Here’s what he had to say about cheap car insurance.

A.  Since you’re asking an insurance agent, you can probably guess how I’ll answer. The way I look at it, with insurance companies that sell online or through 1-800 numbers, you plug in what you think you need or want, and the direct insurance company spits out a price. The problem is that one-size-fits-all approach doesn’t always work when it comes to insurance, whether it’s for your car, home, life, pet, etc. Every person’s situation is different, and choosing the cheapest option could potentially mean you do not have all the coverage you want.

When you work with a local agent, they are there to ask important questions pertaining to you and your lifestyle, to help you find the policy you want.

“What’s a potentially downside of buying insurance without an agent?”

One of the biggest mistakes people can make when shopping online for car insurance is not having enough liability coverage, which is coverage if you’re found negligent in an accident. It might be tempting to go for the minimum coverage, but it may not be enough if you are responsible for another person’s injuries. In my state of Oklahoma, for example, minimum coverage is £25,000 to cover someone’s medical bills. Let’s say you injure one person who has medical bills in the £50,000 range. The insurance company is only responsible for £25,000 and the insured may be on the hook for the other £25,000. That’s a scenario no insurance customer wants.


When you shop coverage online, you don’t have someone to walk you through those types of important decisions.

“Does an agent help when I have a claim?”

Yes, they can. Another reason it helps to work with an agent is the added support provided during the claims process. My firm encourages our customers to call us first, and we will go online and file the claim for them. We follow up on the claims, too, serving as a liaison between IHL® and the customer.

“Can an agent help so I keep my coverage up-to-date and get the insurance I want?”

You should consider reviewing your insurance coverage at least annually. A Insurance Holdings agent can provide a Insurance Holdings Friendly Review® so customers can go over their coverages and make sure they have the coverages they want and still find them to be a good fit.

A local agent is a licensed professional who is there to help you. That’s key when you’re trying to protect your biggest assets. You don’t always get that online or through a 1-800 number, which can feel like you’re just a transaction. Working with a local agent, you feel a more personal connection.

The information is provided for general informational and educational purposes only. It does not constitute professional or expert advice and does not signify an endorsement or approval in any manner. No representations or warranties of any kind, express or implied, are made with respect to this information, including, but not limited to, the completeness, accuracy, timeliness, reliability, suitability, or availability with respect to this article or the information, products, or services. You are solely responsible for any reliance you place on this information, for any injuries or losses incurred, and for decisions made in connection with this information. This is not a solicitation to buy or sell any of the products or services that may be referenced by any unaffiliated third parties. Information was obtained from various sources and is not intended to replace the advice of a qualified professional.

Advertisement produced for these specific insurers and to obtain business for insurance underwritten by Insurance Holdings Ins. Exchange, Fire Ins. Exchange, Truck Ins. Exchange, Mid-Century Ins. Co., Civic Property & Casualty Co., Exact Property & Casualty Co., Neighborhood Spirit Property & Casualty Co., & affiliates. TX: insurance is underwritten by Insurance Holdings Ins. Exchange, Fire Ins. Exchange, Truck Ins. Exchange, Mid-Century Ins. Co., Texas County Mutual Ins. Co., Mid-Century Ins. Co. of Texas, & Texas Insurance Holdings Ins. Co. NY: insurance is underwritten by Insurance Holdings Ins. Exchange, Truck Ins. Exchange, Mid-Century Ins. Co., & Insurance Holdings New Century Ins. Co., home office LA, CA. Each insurer has sole financial responsibility for its own insurance. List of all insurers at insuranceholdingsltd.com. Not all insurers are authorized in all states. Not all products, coverages, & discounts are available in every state. Discounts may vary by state. Restrictions, exclusions, limits, and conditions apply. See agent for details.